The Efficiency Paradox
Eleanor M. Fox
New York University School of Law
July 8, 2009
HOW THE CHICAGO SCHOOL OVERSHOT THE MARK: THE EFFECT OF CONSERVATIVE ECONOMIC ANALYSIS ON U.S. ANTITRUST, R. Pitofsky, ed., Oxford, p. 77, 2008
NYU Law and Economics Research Paper No. 09-26
The article assumes arguendo that efficiency is the sole goal of antitrust. It then observes that how to achieve efficiency by applications of antitrust law is not obvious; that there are various routes towards attempting to achieve efficiency, and Chicago School advocates have picked one based on a principle of non-intervention rather than one based on a principle of trust in rivalry and open markets. The article shows how application of the non-intervention principle protects dominant firms from the competition of their rivals and in that connection deprives the market of efficiencies. Robert Bork argued in THE ANTITRUST PARADOX: in the name of competition, antitrust harmed competition. Professor Fox now argues: in the name of efficiency, conservative advocates and jurists harm efficiency. This is The Efficiency Paradox of her title.
Number of Pages in PDF File: 18Accepted Paper Series
Date posted: July 12, 2009
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